[Vision2020] NY Times: Offshore Employment Analysis. For your rumination and comment.
Art Deco aka W. Fox
deco@moscow.com
Thu, 22 Apr 2004 07:16:28 -0700
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April 22, 2004
OP-ED COLUMNIST
Losing Our Edge?
By THOMAS L. FRIEDMAN
was just out in Silicon Valley, checking in with high-tech entrepreneurs
about the state of their business. I wouldn't say they were universally gloomy,
but I did detect something I hadn't detected before: a real undertow of concern
that America is losing its competitive edge vis-à-vis China, India, Japan and
other Asian tigers, and that the Bush team is deaf, dumb and blind to this
situation.
Several executives explained to me that they were opening new plants in
Asia - not because of cheaper labor. Labor is a small component now in an
automated high-tech manufacturing plant. It is because governments in these
countries are so eager for employment and the transfer of technology to their
young populations that they are offering huge tax holidays for U.S.
manufacturers who will set up shop. Because most of these countries also offer
some form of national health insurance, U.S. companies shed that huge open
liability as well.
Other executives complained bitterly that the Department of Homeland
Security is making it so hard for legitimate foreigners to get visas to study or
work in America that many have given up the age-old dream of coming here.
Instead, they are studying in England and other Western European nations, and
even China. This is leading to a twofold disaster.
First, one of America's greatest assets - its ability to skim the cream
off the first-round intellectual draft choices from around the world and bring
them to our shores to innovate - will be diminished, and that in turn will
shrink our talent pool. And second, we could lose a whole generation of
foreigners who would normally come here to study, and then would take American
ideas and American relationships back home. In a decade we will feel that loss
in America's standing around the world.
Still others pointed out that the percentage of Americans graduating with
bachelor's degrees in science and engineering is less than half of the
comparable percentage in China and Japan, and that U.S. government investments
are flagging in basic research in physics, chemistry and engineering. Anyone who
thinks that all the Indian and Chinese techies are doing is answering
call-center phones or solving tech problems for Dell customers is sadly
mistaken. U.S. firms are moving serious research and development to India and
China.
The bottom line: we are actually in the middle of two struggles right now.
One is against the Islamist terrorists in Iraq and elsewhere, and the other is a
competitiveness-and-innovation struggle against India, China, Japan and their
neighbors. And while we are all fixated on the former (I've been no exception),
we are completely ignoring the latter. We have got to get our focus back in
balance, not to mention our budget. We can't wage war on income taxes and
terrorism and a war for innovation at the same time.
Craig Barrett, the C.E.O. of Intel, noted that Intel sponsors an
international science competition every year. This year it attracted some 50,000
American high school kids. "I was in China 10 days ago," Mr. Barrett said, "and
I asked them how many kids in China participated in the local science fairs that
feed into the national fair [and ultimately the Intel finals]. They told me six
million kids."
For now, the U.S. still excels at teaching science and engineering at the
graduate level, and also in university research. But as the Chinese get more
feeder stock coming up through their high schools and colleges, "they will get
to the same level as us after a decade," Mr. Barrett said. "We are not
graduating the volume, we do not have a lock on the infrastructure, we do not
have a lock on the new ideas, and we are either flat-lining, or in real dollars
cutting back, our investments in physical science."
And what is the Bush strategy? Let's go to Mars. Hello? Right now we
should have a Manhattan Project to develop a hydrogen-based energy economy -
it's within reach and would serve our economy, our environment and our foreign
policy by diminishing our dependence on foreign oil. Instead, the Bush team says
let's go to Mars. Where is Congress? Out to lunch - or, worse, obsessed with
trying to keep Susie Smith's job at the local pillow factory that is moving to
the Caribbean - without thinking about a national competitiveness strategy. And
where is Wall Street? So many of the plutocrats there know that the Bush fiscal
policy is a long-term disaster. They know it - but they won't say a word because
they are too greedy or too gutless.
The only crisis the U.S. thinks it's in today is the war on terrorism, Mr.
Barrett said. "It's not."
Copyright 2004 The New York Times Company | Home | Privacy Policy | Search
| Corrections | Help | Back to Top
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<H5>April 22, 2004</H5><NYT_KICKER><FONT color=3D#666666=20
size=3D-1><STRONG>OP-ED COLUMNIST</STRONG></FONT> =
</NYT_KICKER><NYT_HEADLINE=20
version=3D"1.0" type=3D" ">
<H2>Losing Our Edge?</H2></NYT_HEADLINE><NYT_BYLINE =
version=3D"1.0"=20
type=3D" "><FONT size=3D-1><STRONG>By THOMAS L.=20
FRIEDMAN</STRONG></FONT><BR></NYT_BYLINE>
<TABLE cellSpacing=3D0 cellPadding=3D0 align=3Dright border=3D0>
<TBODY>
<TR>
<TD></TD></TR></TBODY></TABLE><NYT_TEXT>
<P><IMG height=3D33 alt=3DI=20
src=3D"http://graphics7.nytimes.com/images/dropcap/i.gif" =
width=3D11=20
align=3Dleft border=3D0> was just out in Silicon Valley, checking =
in with=20
high-tech entrepreneurs about the state of their business. I =
wouldn't say=20
they were universally gloomy, but I did detect something I hadn't =
detected=20
before: a real undertow of concern that America is losing its =
competitive=20
edge vis-=E0-vis China, India, Japan and other Asian tigers, and =
that the=20
Bush team is deaf, dumb and blind to this situation.</P>
<P>Several executives explained to me that they were opening new =
plants in=20
Asia =97 not because of cheaper labor. Labor is a small component =
now in an=20
automated high-tech manufacturing plant. It is because governments =
in=20
these countries are so eager for employment and the transfer of =
technology=20
to their young populations that they are offering huge tax =
holidays for=20
U.S. manufacturers who will set up shop. Because most of these =
countries=20
also offer some form of national health insurance, U.S. companies =
shed=20
that huge open liability as well. </P>
<P>Other executives complained bitterly that the Department of =
Homeland=20
Security is making it so hard for legitimate foreigners to get =
visas to=20
study or work in America that many have given up the age-old dream =
of=20
coming here. Instead, they are studying in England and other =
Western=20
European nations, and even China. This is leading to a twofold =
disaster.=20
</P>
<P>First, one of America's greatest assets =97 its ability to skim =
the cream=20
off the first-round intellectual draft choices from around the =
world and=20
bring them to our shores to innovate =97 will be diminished, and =
that in=20
turn will shrink our talent pool. And second, we could lose a =
whole=20
generation of foreigners who would normally come here to study, =
and then=20
would take American ideas and American relationships back home. In =
a=20
decade we will feel that loss in America's standing around the =
world. </P>
<P>Still others pointed out that the percentage of Americans =
graduating=20
with bachelor's degrees in science and engineering is less than =
half of=20
the comparable percentage in China and Japan, and that U.S. =
government=20
investments are flagging in basic research in physics, chemistry =
and=20
engineering. Anyone who thinks that all the Indian and Chinese =
techies are=20
doing is answering call-center phones or solving tech problems for =
Dell=20
customers is sadly mistaken. U.S. firms are moving serious =
research and=20
development to India and China. </P>
<P>The bottom line: we are actually in the middle of two struggles =
right=20
now. One is against the Islamist terrorists in Iraq and elsewhere, =
and the=20
other is a competitiveness-and-innovation struggle against India, =
China,=20
Japan and their neighbors. And while we are all fixated on the =
former=20
(I've been no exception), we are completely ignoring the latter. =
We have=20
got to get our focus back in balance, not to mention our budget. =
We can't=20
wage war on income taxes and terrorism and a war for innovation at =
the=20
same time.</P>
<P>Craig Barrett, the C.E.O. of Intel, noted that Intel sponsors =
an=20
international science competition every year. This year it =
attracted some=20
50,000 American high school kids. "I was in China 10 days ago," =
Mr.=20
Barrett said, "and I asked them how many kids in China =
participated in the=20
local science fairs that feed into the national fair [and =
ultimately the=20
Intel finals]. They told me six million kids."</P>
<P>For now, the U.S. still excels at teaching science and =
engineering at=20
the graduate level, and also in university research. But as the =
Chinese=20
get more feeder stock coming up through their high schools and =
colleges,=20
"they will get to the same level as us after a decade," Mr. =
Barrett said.=20
"We are not graduating the volume, we do not have a lock on the=20
infrastructure, we do not have a lock on the new ideas, and we are =
either=20
flat-lining, or in real dollars cutting back, our investments in =
physical=20
science."</P>
<P>And what is the Bush strategy? Let's go to Mars. Hello? Right =
now we=20
should have a Manhattan Project to develop a hydrogen-based energy =
economy=20
=97 it's within reach and would serve our economy, our environment =
and our=20
foreign policy by diminishing our dependence on foreign oil. =
Instead, the=20
Bush team says let's go to Mars. Where is Congress? Out to lunch =
=97 or,=20
worse, obsessed with trying to keep Susie Smith's job at the local =
pillow=20
factory that is moving to the Caribbean =97 without thinking about =
a=20
national competitiveness strategy. And where is Wall Street? So =
many of=20
the plutocrats there know that the Bush fiscal policy is a =
long-term=20
disaster. They know it =97 but they won't say a word because they =
are too=20
greedy or too gutless.</P>
<P>The only crisis the U.S. thinks it's in today is the war on =
terrorism,=20
Mr. Barrett said. "It's not." </P></NYT_TEXT><BR>
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